Lot-sizing decisions for deteriorating items with two warehouses under an order-size-dependent trade credit

Liao, Jui‐Jung; Huang, Kuo-Nan; Chung, Kun‐Jen

doi:10.1016/j.ijpe.2012.01.020

Cited by 73 publications

(44 citation statements)

References 30 publications

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“…Teng et al [21] extended the constant demand to a linear nondecreasing demand function of time in a trade credit problem. Liao et al [22] established an EOQ model for deteriorating items with two warehouses and the delayed payment was permitted only when the ordering quantity met a given threshold. Jaggi et al [23] formulated an inventory model with fully backlogged allowable shortages considering pay off time for the retailer.…”

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confidence: 99%

A capital flow constrained lot sizing problem with trade credit

Chen

Zhang

2017

Scientia Iranica

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Abstract. This paper incorporates capital flow constraints and trade credit to lot sizing problems. Capital flow constraint is different from traditional capacity constraints: when a manufacturer begins to produce a certain number of products, its present capital should not be less than its total production costs of that period; otherwise, the manufacturer must decrease production quantity or suspend production, or it could delay payment using trade credit. Moreover, the capital of each period should also be greater than zero to avoid bankruptcy. We formulate a mathematical model for the single-item lot sizing problem. Based on dynamic programming, we approximate this mixed integer problem to a traveling salesman problem finding the longest route, divide the model into sub-linear problems without integer variables, and propose a dynamic programming algorithm with heuristic adjustment to solve it. The sub-linear problems can be easily solved by interior point algorithm. Our algorithm could obtain optimal solutions under certain situations. Numerical analysis shows our algorithm has small optimality deviation percentage under other situations and holds computation efficiency advantage compared with CPLEX 12.6.2. It also indicates capital flow constraints and the application of trade credit in lot sizing problems could affect optimal production decisions.

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confidence: 99%

A capital flow constrained lot sizing problem with trade credit

Chen

Zhang

2017

Scientia Iranica

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“…Agrawal et al (2013) derived the model with ramp-type demand and partially backlogged shortages for a two-warehouse system. Liao et al (2012Liao et al ( , 2013 developed two-warehouse inventory models under different assumptions. Jaggi et al (2014) discussed under credit financing in a two-warehouse environment for deteriorating items with price-sensitive demand and fully backlogged shortages.…”

Section: Literature Reviewmentioning

confidence: 99%

An EOQ model for non-instantaneous deteriorating items with two levels of storage under trade credit policy

Udayakumar

Geetha

2017

J Ind Eng Int

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A deterministic inventory model with two levels of storage (own warehouse and rented warehouse) with non-instantaneous deteriorating items is studied. The supplier offers the retailer a trade credit period to settle the amount. Different scenarios based on the deterioration and the trade credit period have been considered. In this article, we have framed two models considering single warehouse (Model-I) and two warehouses (Model-II) for non-instantaneous deteriorating items. The objective of this work is to minimize the total inventory cost and to find the optimal length of replenishment and the optimal order quantity. Mathematical theorems have been developed to determine the existence and the uniqueness of the optimal solution. Computational algorithms for the two different models are designed to find the optimal order quantity and the optimal cycle time. Comparison between the optimal solutions for the two models is also given. Numerical illustrations and managerial insights obtained demonstrate the application and the performance of the proposed theory.

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“…Teng et al [21] studied the optimal policies of both the supplier and buyer under the non-cooperative and cooperative situations. Liao et al [22] discussed the optimal order quantity of deteriorating product with trade credit under two storage facilities. Tsao [23] discussed the inventory policies of imperfect products.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainable Trade Credit and Replenishment Policies under the Cap-And-Trade and Carbon Tax Regulations

2015

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Abstract:The paper considers the sustainable trade credit and inventory policies with demand related to credit period and the environmental sensitivity of consumers under the carbon cap-and-trade and carbon tax regulations. First, the decision models are constructed under three cases: without regulation, carbon cap-and-trade regulation, and carbon tax regulation. The optimal solutions of the retailer in the three cases are then discussed under the exogenous and endogenous credit periods. Finally, numerical analysis is conducted to obtain conclusions. The retailer shortens the trade credit period as the environmental sensitivity of the consumer is enhanced. The cap has no effects on the credit period decisions under the carbon cap-and-trade regulation. Carbon trade price and carbon tax have negative effects on the credit period. The retailer under carbon cap-and-trade regulation is more motivated to obey regulations than that under carbon tax regulation when carbon trade price equals carbon tax. Carbon regulations have better effects on carbon emission reduction than with exogenous credit term when the retailer has the power to decide with regards credit policies.

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Lot-sizing decisions for deteriorating items with two warehouses under an order-size-dependent trade credit

Cited by 73 publications

References 30 publications

A capital flow constrained lot sizing problem with trade credit

A capital flow constrained lot sizing problem with trade credit

An EOQ model for non-instantaneous deteriorating items with two levels of storage under trade credit policy

Sustainable Trade Credit and Replenishment Policies under the Cap-And-Trade and Carbon Tax Regulations

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